Income Tax Exemption Law
Personal tax exemptions reduce your taxable income by $3,650 per exemption. You are usually allowed one exemption for yourself, your spouse if you are married and each dependent.
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Dependents
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If someone you are claiming as a dependent was born alive on or before Dec. 31 of the tax year and meets certain other tests, you can take an exemption for him. He must be a blood relative or a step-parent, step-brother or step-sister. Your dependent must be a member of your household for the entire year, except for temporary absences. He must have made less than $3,650, unless he is your child and under 19 years old or a full-time student and under 24 years old. In order to be your dependent, he must receive more than one-half his support from you, must not be required to file a joint return and must be a U. S. citizen or a resident of Canada or Mexico.
Divorced or Separated Parents
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If you are divorced or separated, you can usually only claim your child as a dependent if you had custody of him for most of the tax year unless you and your spouse have agreed otherwise.
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Multiple Support Agreements
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The rules for Multiple Support Agreements often come into play when members support a relative, often a parent. You can take the exemption for a dependent where you have a multiple support agreement if you provide more than 10 percent of his support, if you and the others who signed the Multiple Support Agreement provided more than half of his support and the other parties to the agreement give you the right to claim him.
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